Questions and Answers
Commercial banks use deposited funds to provide commercial loans to firms and personal loans to individuals.
True
Insurance companies invest the proceeds from insurance premiums in securities until needed to pay off claims by policyholders.
True
Insurance companies primarily invest in real estate with the proceeds from insurance premiums.
False
Financial institutions only focus on providing banking services and do not deal with insurance or investment management.
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Commercial banks do not attempt to influence the management of firms in which they own stocks or bonds.
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